U.S. Department of LaborWage and Hour Division

Investigation ProceduresUnder SCA/FLSA/CWHSSA

U.S. Department of LaborWage and Hour Division

Overview SCA Labor Standards/Contract Stipulations

Initial Steps in Conducting an Investigation

Determining Compliance

Conclusion of Investigation

U.S. Department of LaborWage and Hour Division

SCA Labor Standards Contract Stipulations:

Prevailing wages to be paid to various classes of service employees

Fringe benefits to be furnished

Safety and health provisions

Notice of required compensation to be furnished to employees

U.S. Department of LaborWage and Hour Division

Authority and Reasons for SCA Investigations

DOL has sole enforcement authority under SCA

WHD may conduct investigations for a number of reasons

Reason is not disclosable

Many are initiated by complaints

Complaints are confidential

U.S. Department of LaborWage and Hour Division

Compliance Issues An investigation will generally identify and examine

the following issues:

Are SCA stipulations included in contract?

Does contract have correct WD?

Are the SCA poster and WD, including any conformance actions, posted at the site or made available to employees?

Does WD contain necessary classifications?

U.S. Department of LaborWage and Hour Division

Compliance Issues (cont’d)More investigation issues:

Is a conformance necessary?

Are employees properly classified?

Are fringe benefits being properly paid?

Is “overtime” correctly paid under the FLSA or CWHSSA, if appropriate?

Has employer kept accurate payroll records?

U.S. Department of LaborWage and Hour Division

Initial Employer Contact Initiate contact with employer Obtain:

Legal name and trade name of employer Officers (Name and Title)Full address Federal tax identification number (FEIN)Information on firm (size, dollar volume, etc.)

U.S. Department of LaborWage and Hour Division

Initial Employer Contact (cont’d.) Inform employer of investigation:

Scope of investigation

Examine payroll records

Conduct employee interviews

Inspect job site

U.S. Department of LaborWage and Hour Division

Examine Payroll Records(29 C.F.R. §§ 4.6(g), 4.185)

Contractor and each subcontractor must maintain for each employee for 3 years:

Name, address and social security number

Work classification, wages and benefits

Daily/weekly compensation and hours worked, and any payroll deductions

Length of service list of the predecessor contractor

U.S. Department of LaborWage and Hour Division

Employee Interviews Are essential to the investigation Information provided is confidential Interview Statement should contain:

Place and date of interviewName and address of employer/employeeEmployment status and classificationAlleged violations

U.S. Department of LaborWage and Hour Division

Conclusion of Investigation Inform contractor of investigation findings

Detail steps to eliminate violations

Consider additional evidence

Request payment of back wages

Notify contracting agency of any liquidated damages under the CWHSSA

U.S. Department of LaborWage and Hour Division

Withholding of funds(29 C.F.R. §§ 4.6(i) & 4.187)

May be necessary to recover back wages Government may also institute court action against

contractor, or its surety, to recover wage and fringe benefit underpayments

Subcontractor’s failure to make restitution becomes prime contractor’s responsibility

Contractor will be notified in writing Wage claims have priority

U.S. Department of LaborWage and Hour Division

Debarment (41 U.S.C. § 354; 29 C.F.R. § 4.188)

Any person or firm found to have violated the SCA may be ineligible to receive further contracts for three years

Unless finding of “unusual circumstances” - burden is on contractor to establish

GSA's Excluded Parties List System (EPLS) reflects debarred firms by name/address

U.S. Department of LaborWage and Hour Division

Hearing Process(29 C.F.R. Part 6)

Complaint filed by WHD with DOL’s Administrative Law Judge (ALJ) when a contractor:

Fails to pay back wages, or

Refuses to agree to future compliance, or

Debarment is recommended

U.S. Department of LaborWage and Hour Division

Hearing Process (cont’d.) Contractor served with copy of complaint

Office of the Chief ALJ responsible for scheduling of administrative hearings

ALJ decisions may be appealed (within 40 days) to the Administrative Review Board, which makes final agency rulings

U.S. Department of LaborWage and Hour Division

Administrative Review Board (29C.F.R. Part 8)

Members appointed by Secretary of Labor Hears appeals of ALJ decisions Acts on petitions to review final rulings of WHD

Administrator:60 days on coverage & interpretations20 days on WD matters

Proceeding may be an oral hearing or by review of record in closed session

U.S. Department of LaborWage and Hour Division

Disclaimer This presentation is intended as general information only and does not

carry the force of legal opinion. The Department of Labor is providing this information as a public

service. This information and related materials are presented to give the public access to information on Department of Labor programs. You should be aware that, while we try to keep the information timely and accurate, there will often be a delay between official publications of the materials and the modification of these pages. Therefore, we make no express or implied guarantees. The Federal Register and the Code of Federal Regulations remain the official source for regulatory information published by the Department of Labor. We will make every effort to keep this information current and to correct errors brought to our attention.